How to record captive management fees
Recording revenue for professional services provided to manage a captive insurance entity.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Captive Clients | Asset | 7,500.00 | - |
| Captive Management Revenue | Revenue | - | 7,500.00 |
💡 Accountant's Note
MGAs often provide management services to captives, including compliance and accounting, billed as a flat fee or percentage of premium.
Practitioner & Systems Framework
💻 ERP Architecture
Set up a recurring billing module for fixed-fee captive management contracts.
⚠️ Audit Flags
Consistency between fee revenue and service agreements in the captive's board minutes.
📄 Required Documentation
Captive Management Agreement and monthly service report.
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Expert Analysis by Qusai Ahmad
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Discussion & Community Questions
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